Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)

Abstract

Success of Malls in an Emerging Market: An Evaluation beyond Huffs Model

Author(s): Subhendu Dey, Jayanta Banerjee and Bibhutesh Nayak

Purpose: Modern day shopping malls are increasingly becoming an inseparable part of residents of urban India. The increase in the number of malls in the recent past reflects the growing demand for malls in the country. However, a large number of shopping malls in India are under-performing. Hence, this paper attempts to study the factors that influence selection of a shopping mall over another by consumers in India. A major component of Huff’s Gravity Model is about identification of the best location. In this paper, the researchers have gone beyond only location and distance as a factor for success of malls. Design/methodology employed: A survey of the residents of Chennai, a major city of India, was conducted to assess the reasons behind their selection of a particular mall over another. A total of 200 usable responses were obtained from five shopping malls in Chennai, with the help of a pre-structured questionnaire. KMO and Bartlett’s Test has been used to check for the applicability of factor analysis, and then the core factors arrived at. Findings: Parameters like distance, presence of multiplex and supermarkets having an impact on the number of footfalls have been studied. This paper concludes that age is a significant factor for visits to malls, and also influences the frequency to visit the mall; while distance is a significant factor in the choice of malls, presence of multiplex helps increase footfalls in the malls independent of the distance from residence. The two factors that drive customers to malls are ‘Entertainment and other facilities’ and ‘Mall atmospherics’. Research limitations/implications: The sampling frame for this research was limited to consumers visiting five malls in Chennai. Though the findings of the study are interesting, these cannot be generalised to all emerging markets or to other cities of India. The non‐probability sampling method used in this study may have led to biases in selection of respondents. Future researchers may utilize random sampling methods to ensure generalisability of results. Future research should also consider a broader demographic profile representing multiple geographical locations in India and other countries, given that consumer’s shopping‐related perceptions and expectations are likely to differ across different countries and cultures. Practical and Social implications: This study provides a platform to understand the attitudes of Chennai customers towards shopping malls. National and international mall developers may look at these factors while developing malls in India. Also, there are approximately 14 million retail outlets in India which operate from floor space less than 500 sq. ft. These outlets along with mall developers can greatly benefit from this study. Originality/value: The data indicated the primacy of certain shopping motives over others in explaining why respondents visited shopping malls. The results of this study have several implications that should be of benefit to the retailing industry, and mall management, specifically.

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